The Central Board of Indirect Taxes and Customs (CBIC), on October 26, 2026, issued guidelines under Section 168(1) of the CGST Act, 2017, to ensure uniformity, transparency and consistency in demand, adjudication and appeal proceedings. The guidelines aim to ensure that adjudication and appellate orders are reasoned, evidence-based and compliant with the principles of natural justice.
The key directions include:
- Pre-SCN Intimation: Proper officers may, wherever feasible, issue pre-show cause notice intimation in Part A of FORM GST DRC-01A under Rule 142(1A) of the CGST Rules, 2017, to provide taxpayers an opportunity to clarify their position before formal proceedings.
- Issuance of SCN: Summaries accompanying notices or statements must be issued electronically in FORM GST DRC-01 and FORM GST DRC-02, as applicable, under the relevant provisions of the CGST Rules.
- Drafting of SCN: Notices should clearly specify the taxpayer's particulars, factual background, examination of documents and evidence, relevant legal provisions, statement of charges and quantification of demand. Allegations against multiple noticees should be individually identified and supported by evidence. Notices should avoid language indicating a pre-determined conclusion.
- Reasoned Adjudication and Appellate Orders: Authorities must independently examine submissions and evidence, consider relevant statutory provisions and judicial pronouncements, record clear findings on each material issue and pass reasoned orders in accordance with the principles of natural justice.
The circular provides an illustrative and non-exhaustive framework for officers conducting quasi-judicial proceedings. These guidelines must not be cited by proper officers in show cause notices, final orders or appellate orders. Any difficulty in implementation may be brought to the notice of the Board.
[CBIC Circular No. 258/04/2026-GST]
